November 22, 2010

Australia's cattle supply decreases

Most physical markets experienced a decrease in supply last week after Australia's eastern states encountered more heavy rain which disrupted supply.

Queensland was most affected, after significant rain in central, northern and western areas of the state. The decline in supply caused some processing plants to decrease shifts, and with unavoidable wet season, there are reports that some cattle will not be able to be transported until the following year.

In New South Wales, supply also decreased by 20% due to the rain, while in Victoria, numbers were back 7% for the week. The yarding trend was mixed in Victoria, with seasonal conditions permitting producers to hold some cattle back, while recent good prices drew more cattle out in other markets.

In Southern Australia, throughput declined by 8%, mainly due to falls at SA LE and Naracoorte, demand was generally solid with quality good across most grades. Western Australia numbers dropped 6%, with great Southern switching to split sales for the first time this season.